Accountability, Responsibility & Ownership

King Hammurabi was the first person who not only realized the importance of balance between accountability and incentives but also defined rules and regulation for workers .His main focus was construction sector .His philosophy of accountability is relevant in todays corporate culture. Fostering the culture of accountability and responsibility is the prime job of organizational leadership.

1. Accountability,Responsibility&Ownership (In the light of Hammurabi Laws) Iftikhar . A .Chauhan G.M Operations Sameel Pharmaceuticals(Pvt)Ltd Faisalabad.

2. . Almost 4,000 years ago, King Hammurabi of Babylon, Mesopotamia, laid out one of the first sets of laws. Hammurabi’s Code is among the oldest translatable writings. It consists of 282 laws, most concerning punishment. Each law takes into account the perpetrator’s status. The code also includes the earliest known construction laws, designed to align the incentives of builder and occupant to ensure that builders created safe homes : Introduction

3. Hammurabi’s Code consists of 282 laws, most concerning punishment. Each law takes into account the perpetrator’s status. The code also includes the earliest known construction laws, designed to align the incentives of builder and occupant to ensure that builders created safe homes. e.g. If a builder builds a house for a man and does not make its construction firm, and the house which he has built collapses and causes the death of the owner of the house, that builder shall be put to death. If it causes the death of the son of the owner of the house, they shall put to death a son of that builder. If it causes the death of a slave of the owner of the house, he shall give to the owner of the house a slave of equal value. If it destroys property, he shall restore whatever it destroyed, and because he did not make the house which he builds firm and it collapsed, he shall rebuild the house which collapsed at his own expense. If a builder builds a house for a man and does not make its construction meet the requirements and a wall falls in, that builder shall strengthen the wall at his own expense . Hammurabi’s L aws

4. By today’s standards, Hammurabi was a dictator. Far from abusing his power, however, he considered himself the “shepherd” of his people. Although the Babylonians kept slaves, they too had rights. Slaves could marry other people of any status, start businesses, and purchase their freedom, and they were protected from mistreatment. It seems we’re not as different as it appears. Our modern beliefs are not separate from those of people in Hammurabi’s time; they are a continuation of them. Early legal codes are the ancestors of the ones we now put our faith in . Three important concepts are implicit in Hammurabi’s Code :

5. W e know that human self-preservation instincts are strong. More than strong, they underlie most of our behavior. Wanting to avoid death is the most powerful incentive we have . If we assume that people felt and thought the same way 4000 years ago, we can guess at the impact of the Code. Imagine yourself as a Babylonian builder. Each time you construct a house, there is a risk it will collapse if you make any mistakes. So, what do you do? You allow for the widest possible  margin of safety . You plan for any potential risks. You don’t cut corners or try to save a little bit of money. No matter what, you are not going to allow any known flaws in the construction. It wouldn’t be worth it. You want to walk away certain that the house is solid. Self-Preservation Instinct

6. Hurricane Katrina -2005 (Case study #1) They don’t have much skin in the game. The worst they face if they cause a death is a fine . We saw this in Hurricane Katrina —2005 in which 1600 people died due to flooding caused in part by the poor design of hurricane protection systems in New Orleans. Hindsight analysis showed that the city’s floodwalls, levees, pumps, and gates were ill designed and maintained. The death toll was worse than it would otherwise have been. And yet, no one was held accountable. Hurricane Katrina is regarded as a disaster. At least 80 people died in a blaze that is believed to have started accidentally but that, according to expert analysis, was accelerated by the conscious use of cheap building materials that had failed safety tests.

7. O ur current financial systems do not incentivize people to create wide margins of safety. Instead, they do the opposite — they encourage dangerous risk-taking . Taleb described a way to prevent bankers from threatening the public well-being is to Stop offering bonuses for the risky behavior of people who will not be the ones paying the price if the outcome is bad . … I t’s time for a fundamental reform : Any person who works for a company that, if it failed to produce desired result should not get a bonus, The issue, in Taleb’s opinion, is bonuses as asymmetric incentives. They reward risks but do not punish the subsequent mistakes that cause “hidden risks to accumulate in the financial system and become a catalyst for disaster.” It’s a case of “heads, I win; tails, you lose. "Bonuses encourage bankers to ignore the potential for  Black Swan -2008 like events . THE BLACK SWAN-2008 (Case Study #2)

8. When you align incentives of everyone in both positive and negative ways, you create a system that takes care of itself. The Code illustrates the efficacy of using self-preservation as an incentive . We feel safer in airplanes that are flown by a person and not by a machine because, in part, we believe that pilots want to protect their own lives along with ours. When we lack an incentive to protect ourselves , we are far more likely to risk the safety of other people. This is why bankers are willing to harm their customers if it means the bankers get substantial bonuses. This is why companies that market harmful products, such as fast food and tobacco, are content to play down the risks. Or why Wells Fargo employees opened millions of fake accounts to reach sales targets. Observations

9. Some career fields have a strict system of incentives and disincentives, both official and unofficial . Doctors get promotions and respect if they do their jobs well, and risk heavy penalties for medical malpractice . We trust the military and homeland security personnel with our lives, yet we don’t give them lavish bonuses. They get promotions and the honor of a job well done if they succeed, and the severe disincentive of shame if they fail.” Balance between Incentive & Accountability

10. Accountability Responsibility Ownership Modern day Translation (Hammurabi’s Code)

11. Personal Control delivery Mutual Influence Collaboration Shared Solidarity Unity ARO IS All about------

12. Accountability is an assurance that an individual or an organization will be evaluated on their performance or behavior related to something for which they are responsible . Accountability Employee accountability means holding all levels of employees (from the part-time hourly worker to the C-suite executive) responsible for accomplishing business goals. ... They must feel empowered to do their jobs so they can take ownership of their work and strive for excellence

13. Accountability in the workplace Accountability is about ownership and initiative. This means that when an employee says they will do something, they follow through and get it done. It’s recognizing that other team members are dependent on the results of your work. It’s about open,  proactive communication  to keep team members informed of the status of your commitments because it has a direct impact on their ability to achieve their own commitments. Taking ownership at work  is about taking initiative and doing the right thing for the business. It’s about taking responsibility for results and not assuming it’s someone else’s responsibility. It’s the opposite of passing the buck. Ultimately , when team members consistently demonstrate ownership and accountability, trust is formed.  You trust someone will do the right thing and trust that they’ll do what they said they’d do. Trust is the backbone of high-performing teams .

14. As a manager,  you’re the pacesetter  of tone, performance, and culture for your team. People will follow your lead. If you’re continuously showing up to meetings late, pushing deadlines, and not owning up to your mistakes, the team will follow suit.  So how do you demonstrate your own accountability in the workplace? Complete tasks that have been assigned to you by the timeline you agreed on. Be responsible for the success of your team and make the effort to support your team when needed.  When you schedule meetings, respect everyone else’s time by showing up prepared and on time (and expect that others do too) How to develop culture of Accountability

15. It damages the team . When people are not accountable, one person’s delay becomes the team’s delay . One shortfall snowballs into bigger shortfalls. Tolerating missed deadlines, lack of punctuality, and unfinished work have the tendency to make this behavior “no big deal.” People learn that the real deadline is a week from the published one; that consistently being 10 minutes late for a meeting is the norm; that sub-par work is acceptable. Your team suffers, and ultimately your workplace culture suffers. too.no accountability on the team Having a member of the team that isn’t meeting their commitments and isn’t being held accountable causes frustration and disengagement with the rest of the team. What happens when there’s no accountability ?

16. I ndications that you need A ccountability in the Workplace : Low morale. Unclear priorities. Declining engagement. Ineffective execution. Low levels of trust High turnover

17. Accountability Lack of clarity Excuses Responsibility No one accountable Lack of Systems thinking Ownership F ragmentation Chaos Key Risks in ARO Culture

18. What To Do ?

19. Key Take Away Points Accountability starts at the Top Personal safety and interest are most important for people They perform responsibly if they have stake/fear of accountability A balanced between incentive and accountability is needed